May I speak on your behalf?

<==== Patrick "I will abuse your money" Stapleton

Well, well, after some time of silence, you get two blog entries on one day. Although the weather is rather peculiar up here in Gauties today, and it may even snow, by the feel of it, let me put your mind at ease. No, I don't have too much time on my hands, but I do feel that special events demand special attention.

<==Don "oh, yes, yes, yes, your moneeeey, oooooh" Hutchinson

You see, I was worried that Don and Patrick might think that they are out of mind of us all. Perhaps I speak for the majority of you, when I say that they are still part of our synaptic activities, and I felt it my duty to welcome them back in our midst. Thus, without too much pensation, I wrote them a quick email, just to welcome their return to the wild world of other people's moneys - call it financing a life-style if you want.

This is what I said:

Good old Patrick and Don


Well, on behalf of all your previous investors I would like to give you a hearty welcome to the world of business and finance. There exists no doubt in my mind that this time round you will be equally as successful as you were with your Edwafin venture.


Of course your progress shall be followed and reported on in the minutest detail. Yes, you may not have looked for a while, but the blog has taken on a life of its own and shall now include the reference to your new undertaking. Now, I wonder, which of the two of you has such a fascinating predilection for the concept of “dynamic” as it keeps bobbing to the surface of your schemes. We shall work on that one well, won’t we. Your new email address has been added to my blog list so that you will be automatically aware of what is being said about you – a refreshing thought no doubt.


Oh, before I go. You are naturally inclined to throw all kinds of threats my way – don’t bother, as Patrick knows, I don’t scare easy.


Yours sincerely


Dr Mario Koppers

You will have noticed that I used my social title, this is just to ensure them that my welcome note was official. No, I didn't use their titles - the ones they are entitled to - because that might just ban me from blogging on Google.

Toodleloo

Stirrings in the world of finance

After some major silence, a few snippets of information need to be shared. No, the liquidators have not moved to an alternative universe they are merely hiding behind a distant red giant. Slowly I'm seeing my own prophetic vision manifest into solid  molecules of structure: the liquidators are like the seaweed you encounter on a Sunday morning stroll on the beach. You know it has an ecological purpose, and that it has emerged, rootlessly, from the deep depths. But now that it has found a place in your reality on the hot sands before you, you cannot for the life of you imagine, what its purpose in creation is. It is a browning, dark green in colour, and, yep, it stinks to high heaven (interesting expression that: something stinking to high heaven). Soon, - having occupied a small momentary place in our reality, it will have dissolved itself and be no more.

The Pair

However, that is not true of the "pair"" Patrick Stapleton and Don Hutchinson. These two seem to have elected to be joined at the hip, as will become clear soon.

Apparently the high life is still very strong with The Pair, and Patrick has been observed gallivanting all over the place in his high priced 4 x 4. Yes, folks he is putting our money to good use. At least we cannot fault him on that.

Remember, a while ago I reported on the probability that The Pair were planning their next operation of extortion. I suspected that its name would have something to do with dynamic. Well, one of our sleuths have encountered the following web site: http://dynamicmc.co.za/. Of course you are quite correct, the site is appallingly designed and incomplete, but baby-steps, yes baby-steps. When you have a look-see at the site's "Contact us" page you will note the addresses being right in the correct vicinity of The Pair's hunting ground.

Most beauteous of the site is the slogan at the top:

Risk analysis - Why run your company without the necessary knowledge of the risks attached to various decisions. DMC - let us show you the power behind knowledge.

The key word here is "risk analysis", and we are well versed in that aspect of finance aren't we, fellas? Yet, aren't we being ever so sneaky? Just like our other professional gobbler of other's money, Carole Gradiner, no names are attached to the new venture. Never mind, folks, we, the old Edwafin stalwarts will continue spreading the word for you - won't we now? We also have a very keen sense of smell.

To me it is just soooo fascinating that we have the archetype that only knows how to work, deal, take, and generally manipulate other people's money. Let's face it with their track record, no respectable company would employ them to do an honest days professional, quality work. What else can they do but operate sleaze-like through the reality of other souls. At least they get to call themselves "professional."

The Sherrif, yes the Sherrif

Remember Mr Sherrif of the NPA. Well he was going to visit some of us, for a chat. That was some months ago. Well, I can whisper in your ear that he has been to visit some investors, and that he is probably coming to Gauting this month. The wisdom of visiting Gauteng I would not like to comment upon. However, I am glad to have been proven wrong in my assumption that Mr Sherrif was merely a figment of my imagination. Yep, he really exists, according to reports. His appearance is nevertheless mostly fleeting, and one recovers from the shock very rapidly. We'll see.

Well, that is all for now, and I urge all of you to keep your eyes peeled for the appearances of The Pair as well as the other "innocents" of our production. Let us at least prevent others from falling into the same trap as we now are trying to extricate ourselves.

We'll speak soon again.

You thought that was all for today. I thought so too...

This is a real quick one (he said crossing his fingers behind his back).
No, this is serious.

We have a name
Firstly there seemed to be liquidators who were appointed by the court to look at the assets of Edwafin. Forgive me, but the lady who told me spoke at 157 miles per hour so I missed one of the names as well as some of the other stuff she told me. We all accept that he is important in this matter and will discover his name soon enough. The other is Mr Eugene Nel (I think she said of Ber(r)inger Inc.). I have his addresses and phone number but would first like to get his permission to share it with you. I tried to look them up on the Internet, but Beringer seems a name closely associated with wine and underwear, so I suppose I didn't find it.

Quack Quack
Other news is that I received an urgent message from one of our co-investors telling me that all the remaining Edwafin staff has been moved to the DMC factory in Pietermaritzburg. Of course there is currently a lot of space in the factory now, since it seemed to be nothing more than an empty shell. Now why would old father Patrick waddle his chicks over to PM? Since I have made a new friend in Pietermaritzburg I'm all for the place but surely DMC is a subsidiary of Edwafin, and Edwafin is under provisional liquidation. Huh? Should anybody still be Edwafin at all? Sniff-sniff, there is a slight tinge in the air.

In my search for Mr Nel, I found an interesting article. yes, it states a price of R25.00, but because you take the trouble of reading this blog, I'll give it to you free. This is an extract (Eric Levenstein: AIPSA NEWS, March 2008) The complete newsletter is found here:

PERSONAL LIABILITIES OF DIRECTORS

The personal liability of directors is becoming an emotive and important issue for directors sitting on boards in South Africa. The topic has gained momentum amid talk of a new King Report (the third version, King 3 ), amendments to the Companies Act and general concerns
on the part of directors concerned with incurring personal liability. The prestige of holding numerous non-executive directorships is being overshadowed by the increased personal vulnerability to which it exposes directors, particularly those who lack the requisite experience or time to fulfil their fiduciary obligations to companies on whose boards they sit.

Two recent decisions have shed light on the meaning of incurring personal liability as a director in terms of section 424(1) of the Companies Act No 61 of 1973 (as amended). Before considering the recent developments in South Africa s case law, however, it is necessary to consider the scope of section 424(1) and its application. Section 424(1) of the Companies Act reads as follows -

'When it appears, whether it be in a winding-up, judicial management or otherwise, that any business of the company was or is being carried on recklessly or with intent to defraud creditors of the company or creditors of any other person or for any fraudulent purpose, the Court may, on the application of the Master, the liquidator, the judicial manager, any creditor or member or contributory of the company, declare that any person who was knowingly a party to the carrying on of the business in the manner aforesaid, shall be personally responsible, without any limitation of liability, for all or any of the debts or other liabilities of the company as the Court may direct'.

The intention of this section is to penalise any person who fraudulently or recklessly carries on or manages the business of a company with the intention to defraud creditors of the company. By recklessness , our courts have intended gross negligence with or without consciousness of risktaking. Our courts are, however, guided by the principle that a court should not lightly find recklessness. This principle was established in 1998 in Philotex (Pty) Limited and Others v Snyman and Others and Braitex (Pty) Limited and Others v Snyman and Others.

LATEST CASES - DIRECTORS PERSONAL LIABILITY
From a litigation perspective, the onus is on the plaintiff alleging fraud or recklessness in civil proceedings to prove such fraud or recklessness on a balance of probabilities.

Guidance has been given to our courts through the development of tests to establish recklessness. In 1992, Ozinsky NO v Lloyd and Others formulated the following test:

'If a company continues to carry on business and to incur debt when, in the opinion of reasonable businessmen, standing in the shoes of the directors, there would be no reasonable prospect of the creditors receiving payment when due, it will in general be a proper inference that the business is being carried on recklessly'.

The Philotex decision in 1998 refined the application of the recklessness test by signalling to the courts to have regard to, inter alia, the following factors: the scope of operations of the company, the role, functions and powers of the directors, the amount of the debts, the extent of the company s financial difficulties and the prospects, if any, of recovery .
Eric Levenstein

Shall we dance?

Ouch! My nose ring hurts!

After a few days of dark clouds, the air seems to be lifting somewhat, and we have another moment to ponder the Edwafin conundrum.
Since my last entry I have heard nothing about the famous meetings to which investors were invited. I am still filled with ironic mirth when I think about the feeble attempts by the invincible four to get investors behind their attempt to force the court's hand into pronouncing Judicial Management as the solution to the problem. A problem that has in reality already proven itself to be answered: Edwafin has no money to pay anybody, and they have squandered over R200 million - a major responsibility, if you ask me. One can therefore not help but understand the four's feverish attempts at getting the court to decide to extend the pain further. Let's face it the prospects of sojourning in a SA jail is unpleasant.

Thus like warriors of old, we soldier on. I have visions of barefooted Don and Patrick, robed in leopard skin skirts, each with a feather in his hair, and bellybuttons protruding from paunchy tummies. Faces painted with red and black war paint (Edwafin colours), and the letters DMC on their foreheads, they let out the most unearthly falsetta war cries while they repeatedly shoot straw arrows at the moon, using the tiniest plastic bows. It is a pityful scene to behold: none of their arrows find their mark and they slowly make their way back to the earth below - like teardrops. (Secretly I also have conjectured Verona with a feather as well.)

Of course it is not Patrick's first war against investors, and from emails received on this side of the border, it seems that history has a habit of repeating itself. It appears that not one continent on this blue planet has escaped the unique touch of the Stapletons, and that apparently stretches from Australia to the other end of the planet in Scotland and Finland. From the statistics of viewers of this blog, there are interested parties as far afield as the USA, England, Mexico and Norway. Now that is travelling around the world - talking about the world being a small place!

The four's intentions are noble enough; deftly all together now: "we will trade ourselves out of debt". All the Angels in heaven are singing in praise and flapping their wings. Rejoice, the masters have spoken. (As I am writing this a local drunkard has just begun singing his praises on the banks of the little stream that runs past our house. He does this every Friday afternoon so I don't think he is rejoicing the Edwafin resolution - he sounds too happy so he clearly invested his money somewhere else but Edwafin.)

Let's proceed. We were discussing the ability of the masters to recoup R200 million and bring back profitability to Edwafin, mainly through the car called DMC. Now, I received an interesting email today, and hoped that I would be given permission to publish it here. But the writer has not yet responded to my request. So I do it differently (if permission is given I will publish it immediately).

So we are going to make money with the DMC. This can only happen when the following questions are answered:

• Question: Is the designer of the DMC still employed by Edwafin?
• Question: Are there people at Edwafin who can build the car without the designer?
• Question: Are there any technical people at all left at DMC/Edwafin?
• Question: Do they have money to employ a full compliment of staff to start production in January 2009? (oops, my mistake that was four months ago already)
  
• Question: Whom was the homologation of the DMC awarded to?
• Question: Is that person still with Edwafin?
• Question: Can a car be manufactured and sold without a person who has the proxy to sign of on a finished car?
• Question: What happened during the middle of Dember 2008?
• Question: Why does Patrick repeatedly announce that Edwafin has homologation for the DMC?
• Question: Why does Patrick not show proof of all these statements to the investors whom he so terribly wants to convince?

I don't know about you, you may want Patrick to continue soldiering, but my nose ring hurts.

Signs of Life from the sea side

It has been some ten days since I last visited this blog, and the fact that it is because of good news, is a very positive sign that reality is catching up with positive attitudes. The day before yesterday an email from Mr Stapleton contained a good number of photographs of the DMC car that they manufacturing. It is clear why the vehicle would appeal to people who need a rugged, all terrain car. Also, the factory looks well organized and it is clear that it is a professionaly run operation. Below are two pictures of the vehicle complete and in the process of being build:


I appreciate this update from Edwafin, and the positive nature of the news.